Deloitte partners Circulor on supply chain traceability

upply chain traceability specialist Circulor has formed an alliance with professional service firm Deloitte that aims to increase take-up of the tech company’s platform.

Circulor’s blockchain-powered technology is used to trace raw materials from source to use, with high-profile customers including carmakers Volvo and Tata Motors unit Jaguar Land Rover (JLR) and mining companies BHP and TotalEnergies.

Partners use its traceability platform to meet environmental, social and governance (ESG) targets, for example to make sure their supply chains are sustainable and not having a detrimental impact on the environment or exploiting vulnerable workers, which is increasingly being demanded by regulators and customers.

Volvo uses Circulor’s system to monitor cobalt supplies used in the batteries of its electric cars, while BHP uses it to track the carbon emissions of nickel from the point when the metal was mined to its use in Tesla’s co-called ‘gigafactory’ in Shanghai, China.

London-based Circulor – founded in 2017 – says its software allows companies to follow the physical flow of critical materials from extraction to final production, and also monitors indirect or ‘Scope 3’ emissions to help them reduce their environmental impact.

The two partners say the alliance will help clients accelerate progress toward their ESG and circularity goals, while mitigating risks they may inherit from supply chain partners and creating new business opportunities.

“Clients are facing unprecedented challenges in balancing changing consumer demands and regulations,” commented David Rakowski, partner at Deloitte.

“Combining Circulor’s innovative solution with Deloitte’s leading technology implementation and transformation capabilities will help them to overcome these challenges.”

Billed as a future unicorn company, Circulor has said it is anticipating an initial public offering at some point, but for now is covering its operations and development from contract revenues and financings.

It has raised around £40m ($50m) in private financing to date, with its latest Series B last year earmarked for expansion in North America.

Photo by Dion Beetson on Unsplash